For Tuesday June 26, 2012

 
Monthly Trend is Down. Weekly Trend (see weekly chart above) is Down and Balancing. And we are 1-timeframing down on a daily basis..now 4 days in a row. Friday was an inside day. We gapped lower today and built lower value. Looking at the Daily Bar Chart below we are within a balance area that extends from 1357 to 1280. Since we got rejected at 1357 (6/19/12) the destination trade becomes 1280. 


Looking at the Market Profile below for Monday June 25, I have the following observations:
1. Prominent POC at 1306.75
2. Poor Low at 1302.50


Possible scenarios for Tuesday:

1. Auctioning lower and building lower (to overlapping lower) Value targets the next weekly low at 1299. The next downside reference below the weekly low is the Gap between 1280.25 to 1286.50. 
2. Auctioning higher and building higher Value (to overlapping higher) targets the gap above at 1315.50 - 1320.50. 
3. Staying within Monday's balance.
4. Short-term resistance above is 1309-10 area and above that 1320 area (Gap)
5. 1300 is a key psychological support level.